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Report Date : |
30.03.2013 |
IDENTIFICATION DETAILS
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Name : |
GHAZI FABRICS INTERNATIONAL LIMITED |
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Registered Office : |
8-C, E-III, Gulberg III, Lahore |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2012 |
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Year of Establishments: |
1989 |
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Com. Reg. No.: |
0019559 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
The main activities of the Company are Textile Manufacturing, Production of Cotton, P.C. Yarn & Grey Cloth that are marketed both within and outside Pakistan |
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No. of Employees : |
600 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Unknown |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Pakistan |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
pakistan - ECONOMIC OVERVIEW
Decades of internal political disputes and low levels of foreign
investment have led to slow growth and underdevelopment in Pakistan.
Agriculture accounts for more than one-fifth of output and two-fifths of
employment. Textiles account for most of Pakistan's export earnings, and
Pakistan's failure to expand a viable export base for other manufactures has
left the country vulnerable to shifts in world demand. Official unemployment is
6%, but this fails to capture the true picture, because much of the economy is
informal and underemployment remains high. Over the past few years, low growth
and high inflation, led by a spurt in food prices, have increased the amount of
poverty - the UN Human Development Report estimated poverty in 2011 at almost
50% of the population. Inflation has worsened the situation, climbing from 7.7%
in 2007 to more than 13% for 2011, before declining to 9.3% at year-end. As a
result of political and economic instability, the Pakistani rupee has
depreciated more than 40% since 2007. The government agreed to an International
Monetary Fund Standby Arrangement in November 2008 in response to a balance of
payments crisis. Although the economy has stabilized since the crisis, it has
failed to recover. Foreign investment has not returned, due to investor concerns
related to governance, energy, security, and a slow-down in the global economy.
Remittances from overseas workers, averaging about $1 billion a month since
March 2011, remain a bright spot for Pakistan. However, after a small current
account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current
account turned to deficit in the second half of 2011, spurred by higher prices
for imported oil and lower prices for exported cotton. Pakistan remains stuck
in a low-income, low-growth trap, with growth averaging 2.9% per year from 2008
to 2011. Pakistan must address long standing issues related to government
revenues and energy production in order to spur the amount of economic growth
that will be necessary to employ its growing population. Other long term
challenges include expanding investment in education and healthcare, and
reducing dependence on foreign donors.
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Source : CIA |
GHAZI FABRICS INTERNATIONAL LIMITED
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Registered Address |
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8-C, E-III, Gulberg III, Lahore, Pakistan |
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Tel # |
92 (42) 35764026, 35764027, 35764028
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Fax # |
92 (42) 35764032 |
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a. |
Nature of Business |
The main activities of the Company are Textile Manufacturing, Production
of Cotton, P.C. Yarn & Grey Cloth that are marketed both within and
outside Pakistan |
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b. |
Year Established |
1989 |
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c. |
Registration # |
0019559 |
46 K.M., Multan Road, Bhaipheru,
District Kasur, Punjab, Pakistan
Qadeer & Co.
(Chartered
Accountants)
Subject Company was established as a Public Limited Company
in 1989
Authorized Capital |
Rs. 400,000,000/-
divided into 40,000,000 shares of Rs. 10/- each |
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Issued & Paid up Capital |
Rs. 326,356,000/-
divided into 32,635,600 shares
of Rs. 10/- each |
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Names |
Designation |
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Mr. Mohammad Arshad Chaudhry Mr. Kamran Arshad Mr. Mohammad Tariq Mr. Rizwan Arshad Mrs. Azra Yasmin Miss Fareeha Arshad Miss Wajeeha Arshad |
Chairman / Chief
Executive Director Director Director Director Director Director |
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Categories |
Shareholding (%) |
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Individuals ICP Chief Executive Directors Executives Public Sector Companies Non Banking Financial Institutions Insurance Companies Modarbas |
49.4169 0.0408 49.9455 0.0124 0.0031 0.1054 0.0815 0.3815 0.0086 |
A. Subsidiary
None
B. Associated
Companies
(1) Ghazi Power, Pakistan.
The main activities of the Company are Textile Manufacturing, Production of Cotton, P.C. Yarn & Grey Cloth that are marketed both within and outside Pakistan
|
Year |
In Pak Rupees |
|
2011 2012 |
5,767,986,276/- 4,847,589,707/- |
600
2012 2011
Spinning
No. of spindles installed 51,072 51,072
No. of spindles worked 51,072 51,072
No. of shifts 3 3
Actual production of yarn converted
into
20/s count based on three shifts per
day Kgs 14,520,144 15,807,749
Weaving
No. of looms installed 168 168
No. of looms worked 166 160
No. of shifts 3 3
Actual production of yarn converted
to
40 picks count based on three shifts
per day Sq. meters 62,250,730 65,276,622
Various International
& local
(1) United Bank Limited,
Pakistan.
(2) Habib Bank Limited,
Pakistan.
(3) MCB Bank Limited,
Pakistan.
(4) Allied Bank Limited,
Pakistan.
·
Lahore Chamber of Commerce & Industry.(LCCI)
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Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 99.00 |
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UK Pound |
1 |
Rs. 149.00 |
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Euro |
1 |
Rs. 127.50 |
Subject Company was established in 1989 The main activities of the Company are Textile Manufacturing, Production of Cotton, P.C. Yarn & Grey Cloth that are marketed both within and outside Pakistan. Market reputation is good. Subject can be considered for normal business dealings at usual trade terms and conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
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UK Pound |
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
---- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.